Calculate how much FSA money you risk forfeiting if unspent by year-end. Plan spending to avoid losing your pre-tax healthcare dollars.
Flexible Spending Accounts (FSAs) save you money through pre-tax contributions, but they come with a catch: the use-it-or-lose-it rule. Any funds remaining at the end of the plan year are forfeited — your employer keeps them. For 2026, you can contribute up to $3,200 to a healthcare FSA.
Some employers offer relief: a grace period (up to 2.5 extra months) or a carryover (up to $640 into the next year). But even with these options, over-contributing means lost money. Americans forfeit an estimated $7.2 billion in FSA funds annually.
This calculator tracks your FSA balance, projects whether you'll use it all, and suggests eligible expenses to spend remaining funds on before the deadline. These are educational estimates only and not actual plan guarantees. Whether you are a beginner or experienced professional, this free online tool provides instant, reliable results without manual computation. By automating the calculation, you save time and reduce the risk of costly errors in your planning and decision-making process.
Losing FSA money is throwing away pre-tax savings. This calculator helps you track your balance, identify the deadline, and plan spending so you use every dollar you've set aside — whether on prescriptions, glasses, dental work, or other eligible expenses. Having a precise figure at your fingertips empowers better planning and more confident decisions.
Remaining Balance = Annual Election − Claims Submitted At-Risk Amount = Remaining Balance − Carryover Limit Deadline = Plan Year End (or + Grace Period) Monthly Spend Needed = At-Risk Amount / Months Remaining
Result: $410 at risk of forfeiture
Balance: $2,850 − $1,800 = $1,050 remaining. Carryover saves $640, leaving $410 at risk. With 3 months left, you need to spend ~$137/month on eligible expenses to avoid losing that $410.
Americans forfeit an estimated $7.2 billion in FSA funds annually — an average of about $400 per participant. Since FSA contributions are pre-tax, forfeiting $400 is like throwing away $500–$550 in gross income (depending on your tax bracket). Proper planning eliminates this waste entirely.
If you have remaining FSA funds, prioritize: (1) scheduled healthcare you've been postponing, (2) upcoming prescriptions you can fill early, (3) elective items like prescription sunglasses or orthotics, and (4) eligible OTC products and supplies you'll use anyway.
If you have access to an HSA-eligible high-deductible plan, consider the HSA instead. HSA funds never expire, grow tax-free, and belong to you permanently. FSAs only make sense if you don't qualify for an HSA or need the lower-deductible plan the FSA accompanies.
The use-it-or-lose-it rule means any FSA funds not spent on eligible expenses by the plan deadline are forfeited. You don't get the money back. This is the main drawback of FSAs compared to HSAs, which roll over indefinitely.
Some employers offer a grace period of up to 2.5 months after the plan year ends. During this time, you can still use the previous year's FSA funds. For a calendar-year plan, the grace period extends through March 15 of the following year.
The carryover option lets you roll over up to $640 (2026 limit) of unused FSA funds into the next plan year. Employers can offer either a grace period or a carryover, but not both. Not all employers offer either option.
Eligible expenses include doctor copays, prescriptions, OTC medications, dental work, vision care, contact lenses, mental health copays, first aid supplies, sunscreen, and medical equipment. The IRS publishes a comprehensive list in Publication 502.
Estimate your predictable annual medical expenses: copays, prescriptions, dental work, glasses/contacts, and expected procedures. It's better to slightly underestimate than to forfeit money. Start conservative and increase next year if you consistently spend more.
Generally no, unless you have a qualifying life event (marriage, birth, job change). This is why careful estimation during enrollment is important. Some plans allow a mid-year decrease if you're unlikely to spend the full amount.
The healthcare FSA contribution limit for 2026 is $3,200. Dependent care FSAs have a separate limit of $5,000 ($2,500 if married filing separately). These limits are set by the IRS and adjusted annually for inflation.